Market Observations & Charts
Let’s start with a couple of the indices.
ES - S&P futures - Daily chart: Impressive bounce after the Daily VPOC take out , remember, this is what I hinted at with a higher than expected CPI report re the VPOC takeout. So, now what? Well, it doesn't get easier with overhead supply up at the Oct Value Area bottom of Value 3746 which lines up with the 20d MA. A support area to watch is the 5d EMA which price got over and further down will be that VPOC take out 3556. / 1hr chart: Price rallied up to the the bottom if this week's Value Area, watch 3696.5 as 1st level of resistance to watch (seond chart)
RTY - Russell Small Cap futures- Daily Chart: Small Caps, IWM and Mid Caps, MDY showing that Relative Strength I have been talking about since last week. Price is inside the Oct Value Area bounced at the Sep lows, now watch the 20d MA / 1hr chart: Price is inside the Value Area for the week , support 1720.6 (second chart)
ZB - 30yr Bond Futures- Daily chart: A bond rally was absent yday which raised some eyebrows b/c traders like to see confirming factors, but I would remind you that there is no rule that says Bonds need to rally along w/ Equities and vice versa every single day - do I like to see Bonds rally when Equities do - absolutely! we get some really good signals off of what the Bond market does.. so this is definitively important to watch here, to see what rates do as there are many implication. One thing that I noticed is there is a Bullish RSI divergence as the RSI did not make a low along w/ price. This can signal that low did not have momentum. Watch to see if price can re-claim the 5d EMA today
More Macro Analysis from my End of Day Video:
Stock Charts
I am seeing Strength in Financials, Energy, Health Care, and select Cons Staples. Here are a few names I am watching.
INMD InMode
another strong quarter turned in yesterday and this is the first time that INMD is above its 200d MA since Jan and is above its Oct Value Area. Note there is significant overhead supply (see red lines , VPOCs Virgin Points of Control) so I would be patient with the name.
MTDR Matador Resotuces
Energy co that trade back above its Oct Value Area, can trade vs $62 support
LPLA LPL Financial Holdings,
While many Regional Banks are showing strength, I like LPLA as it broke out of a sideways pattern and back tested Oct Value Area support. I am currently long LPLA.
HSY Hershey
Really like the consolidation here and watching for a break above $228. A recession or not, people will probably eat chocolate!
AZPN Aspen Tech
Talk about relative strength in the Tech space…. AZPN bounce nicely at the 20d MA , the trend is your friend here.
LW Lamb Weston
A Consumer Staple with strong earnings, watch for a move up to $88.4 VPOC.
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